Filing for bankruptcy can be a viable for anyone who has had possessions repossessed by the IRS. Although bankruptcy tends to destroy a person’s credit, it may be the only viable option.Continue reading this article to understand what you need to know about bankruptcy and why to file for bankruptcy.
Don’t feel bad if you need to remind your attorney about important aspects of your case. You cannot expect your lawyer will remember every important detail without a reminder. This is your bankruptcy and your future, so do not be afraid to remind your lawyer of any key facts.
You might experience trouble receiving any unsecured credit after a bankruptcy.If you do, you may want to think about getting a secured card or two. This will show other people that you’re serious when it comes to having your credit score. Once you’ve built up a history of on-time payments, they may allow you to get an unsecured card in the future.
It should go without saying, but refrain from lying in your bankruptcy filings. As long as you are not hiding income or assets from the courts, you can ensure that there are no difficulties with your petition. This will save you from having your petition dismissed and your debts dropped from re-filing.
Before pulling the trigger on bankruptcy, be sure you’ve weighed other options. If your debts are really not overwhelming, you can join a counseling program or straighten your finances out by yourself. You can also talk to creditors and ask them to lower payments, just be sure any debt modifications you agree to are written and that you have a copy.
It is important to meet with the actual lawyer, not the attorney’s assistant or paralegal; those people are not permitted to give legal advice
Understand the differences between Chapter 7 and a Chapter 13 bankruptcy. Take the time to learn about them extensively, and look at the advantages and disadvantages of each.If anything you see is unclear or doesn’t make sense, consult with your attorney about the details before you decide which type of bankruptcy you want to file.
Prior to filing for bankruptcy, research which assets will remain exempt from creditors. The federal statutes covering bankruptcy can tell you exactly which assets are exempt from forfeiture to pay off creditors. You can determine exactly which of your possessions are at risk by consulting this list before you file. If you do not read this list, you could be in for some nasty surprises in the future, if some of your most prized possessions are seized.
Consider if Chapter 13 bankruptcy. If you have a regular source of income and less than $250,000 and you have consistent income, Chapter 13 will be available to you. This lasts for three to five years and after this, in which you’ll be discharged from unsecured debt.Keep in mind that even missing one payment can be enough for your case.
It is possible to obtain new vehicle and home loans while a Chapter 13 bankruptcy. You will have to see your trustee to gain approval for this new loan. You will need to make a budget and how you will be able to afford your new loan payments. You will need to explain why it is necessary for you to take out the purchase is necessary.
If you are seriously thinking of filing bankruptcy, make sure that you contact an attorney. With all the ins and outs of bankruptcies, it can be hard to grasp all the knowledge. An attorney that specializes in personal bankruptcy, can help guide you and make sure that your filing happens properly.
As you can see by now, you do have the option of filing bankruptcy. However, it must not be your first choice due to it causing complications on your credit. Knowing the ins and outs of bankruptcy can make the filing process easier and make it less likely that you’ll have to forfeit your property.